Oman has announced a five-year suspension of withholding tax on service contracts for vessels registered under the Omani flag. The measure, effective from September 1, 2025, through August 31, 2030, aims to strengthen the nation’s maritime and shipping sector. By suspending the tax, Oman aims to boost competitiveness in the global maritime industry while promoting investment in the sector.
Hossam bin Hamad Al Maamari, Director of the Tax Policy Department, stated that the measure is part of the Authority’s broader strategy to enhance the investment climate and support key economic sectors.
Supporting Maritime Growth and Investment
Al Maamari explained: “This initiative directly addresses the needs of the maritime transport industry while encouraging vessel registration under the Omani flag and attracting specialized investments to Oman’s shipping sector.” The tax suspension applies specifically to service contracts performed aboard vessels that have obtained Omani nationality and are officially registered with the competent authorities.
According to the Tax Authority, the relief is expected to reduce operational burdens for maritime companies, increase competitiveness, and support the sector’s expanded contribution to the national economy. Consequently, the initiative provides a strategic advantage for companies looking to expand their operations within Oman’s maritime industry.
Driving Oman’s Regional Maritime Leadership
The Authority encouraged all maritime enterprises to take advantage of the initiative, noting that it will help lower costs, stimulate business expansion, and reinforce the country’s efforts to become a leading regional maritime hub. By providing this tax relief, Oman positions itself as a competitive and attractive destination for shipping and maritime investment.
